Effectiveness of Price Vs. Non-Price Promotion: The Case of Cotton

Patricia A. Duffy, Henry W. Kinnucan


A comparative static framework is used to analyze the effects of non-price promotion and price subsidies for the export market. Results indicate that both tools can be effective in raising domestic cotton price and lowering government costs for cotton programs. As export demand becomes less elastic, non-price promotion becomes the more effective tool.

Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 417 - 419
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998